Subsidies paid to farmers grow in Azerbaijan

Business Materials 9 June 2020 12:21 (UTC +04:00)

BAKU, Azerbaijan, June 9

By Fidan Babayeva - Trend:

Subsidies worth 201.4 million manat ($118.47 million) have been paid to the farmers in Azerbaijan so far, Trend reports citing the Agrarian Credit and Development Agency under the Azerbaijani Ministry of Agriculture.

According to the agency, the new subsidy mechanism, which entered into force in 2020, led to significant liberalization of the fertilizer market. The Electronic Agriculture Information System (EAIS) has registered 238 suppliers of fertilizers, about 400 suppliers of seeds and seedlings.

“Some 25 fertilizer suppliers have registered subsidies-related data in EAIS. Such suppliers include both legal entities and individuals. Up to 100,000 farmers received 46,000 tons of fertilizers and subsidies in the amount of 32 million manat ($18.2 million) from these suppliers,” the report said.

“Up to date, 382,500 farmers have been paid 201.3 million manat ($118.41 million). Farmers can buy fertilizers, pesticides and seeds using their 'farm cards', paying suppliers through POS terminals. According to Kapital Bank, a partner of the Agrarian Credit and Development Agency for the preparation and maintenance of the farm card, farmers received the necessary funds for production from 77 suppliers with a cashless subsidy of 75 million manat ($44.1 million),” said the report.

“Suppliers record information about goods in stock, about sales in EAIS. The system helps them track stock balances and other data. The new system also allows to identify those who use subsidies. At the end of 2020, we will be able to identify the real users of subsidies, the best farmers, by obtaining statistics on purchases from suppliers. After analyzing this information, a decision will be made on whether the remaining non-cash part of the amounts will be saved on farm cards,” the agency emphasized.

According to the new rules for subsidy payments, not only farmers, but also service providers must be registered in the EAIS. By registering in the system and registering their sales, suppliers provide information to farmers about their products and outlets.

(1 USD = 1.7 manat on June 9)


Follow the author on Twitter: Fidan_Babaeva